We’re finally putting on some calls to play the coming rebound rally.
We weren’t about to buy into the upside volatility on Wednesday, and wanted to give the market time for some backing and filling following the historic session.
I think one day is all it needed, though. It’s a fast market.
Thursday offered the ideal exit liquidity for anyone who wanted it. Now, it’s back to rally mode.
And where better to go than the single-best US growth stock of the entire cycle…
Here’s Palantir $PLTR:
We are buying the $PLTR 5/2 $100 calls for approximately $2.10 - $2.35 per contract.
The relative strength out of PLTR through this volatility has been incredible.
Then we have Summit Therapeutics $SMMT.
The stock has been consolidating in a well defined range for the last six months.
With volatility as compressed as it is and price knocking on the door to new highs, we believe we can get a quick double on a reaction rally out of this multi-quarter coil.
SMMT sports a 20% short interest, adding even more juice to an already-spicy setup.
We are buying the $SMMT 5/16 $29 calls for approximately $1.50 - $1.75 per contract.
Another area showing relative strength all year is Brazil. The next two setups are Brazilian ADRs.
I want to be long Real, and these are two great ways to do it.
STNE is putting the finishing touches on a bearish-to-bullish reversal pattern. Not many stocks can say that in the current environment, so we love the leadership here.
Buyers are currently pressing against a critical resistance level, giving us a logical place to define our risk and take a shot.
We are buying the $STNE 5/16 $13 calls for approximately $0.35 - $0.45 per contract.
* STNE options aren’t the most liquid, so position size and manage risk accordingly.
Next is Nu Holdings $NU.
Notice how the stock refused to complete a massive top and instead is hooking higher, back above support.
If we know anything about failed moves, it's that they are followed by fast moves in the opposite direction.
And in such a rapid market, I think this one could work really well.
We are buying the $NU 5/16 $12 calls for approximately $0.30 per contract.
